![]() "Consumers have been moving away from low-fat products," said Nelson. Last year, however, its sales were only $200 million, he said. SnackWell's, introduced in 1992, rang up as much as $500 million in sales three years ago, Nelson said. In June, Nabisco announced a major restructuring program to restore its direct store-delivery sales force, beef up its marketing programs and reformulate its SnackWell's line. That has turned out to be a disaster, and now they're still recovering." ![]() "It also restructured its sales force, took out some of the more highly paid salesmen and replaced them with cheaper part-time employees. "In years past, Nabisco has cut back on some of its marketing spending - advertising and promotion - that consumer companies use to stimulate demand for their products," said Terry Bivens, package-food analyst for Bear, Stearns & Co. While Keebler biscuit sales climbed by 25 percent last year, to $2.1 billion, Nabisco's dropped by 4 percent, to $3.55 billion. But that's still behind Nabisco's market share of 34 percent, he said.Įven so, analysts noted that Nabisco's market share has been dropping in recent years as the company has been adversely affected by a series of management decisions and sluggish sales in its once-popular low-fat SnackWell's brand. The acquisition of President will boost Keebler's market share from 24 percent to more than 28 percent, said David Nelson, a director at Credit Suisse First Boston. Nabisco accounts for one of every three cookies or crackers sold in the country. Still, it remains second to Nabisco Holdings Corp., which makes Oreo, Chips Ahoy, Newtons and Ritz crackers. Today, Keebler sells about one of every four cookies or crackers consumed in the country. Last year, in the first full year that Keebler owned Sunshine, Cheez-It sales climbed by 29 percent, making the cracker the fastest-growing product in what the supermarket industry calls the "biscuit" category. Two years ago, Keebler, the maker of Chips Deluxe, Hydrox and Vienna Fingers, bought Sunshine Biscuits, maker of Cheez-It crackers, the best-selling snack cracker in the country. "Having Keebler's imagination and bringing some of the elfin cookies to the Girl Scouts would be a great thing."Įven more significant, financial analysts said, Keebler's $450 million acquisition of President furthers consolidation of the cookie and cracker industry, which sells over $8 billion worth of snacks a year. "This is a great moment for Girl Scouts everywhere," joked Linda Killian, portfolio manager for Renaissance Capital, an investment firm. President also makes 60 percent of the cookies sold by Girl Scouts in the United States. ![]() Keebler Foods Co., the nation's second-largest cookie and cracker maker, announced plans to acquire the fifth-largest firm, President Baking Co., best known for its Famous Amos and Murray brands. It's a corporate marriage made in fairyland: The Keebler elf and the Girl Scouts Brownie are joining forces to cook up new treats - and profits - in the cookie aisle. ![]()
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